When the market dips, the instinct is often to pull back — to batten down the hatches, cut costs and ride out the storm. And one of the first line items on the budget chopping block? Marketing and PR.
We understand why this is the case. Hunkering down on marketing and PR budgets can offer short-term savings and cost relief, but this can have a negative effect on your long-term market position. Right now, economic signals are flashing yellow, and companies everywhere are tightening their belts. But the reality is that securing long-lasting growth and standing out from your competitors requires you to maintain a healthy market presence.
It’s not so different from traditional investing. Tough times are often the best times to lean in, because others are busy pulling back. Like Bill Gates once said: “if I was down to my last dollar, I would spend it on PR.”
Acting on instinct
In uncertain economic conditions, the natural reaction for businesses to pull the reins on (what they view as) “nice-to-have” spending. According to a 2023 Harvard Business Review article, 60% of companies surveyed said they were facing significant budget constraints, and many chose to reduce spending in areas that are harder to tie directly to short-term revenue — like brand marketing. Similarly, McKinsey found that nearly 50% of CMOs expect budget cuts in response to economic uncertainty.
However, when everyone else cuts, they also create a massive opportunity — for you.
Seize share of voice
Share of Voice (SOV) is a powerful metric. It reflects how much of the market’s attention you’re capturing compared to competitors. And here’s the kicker: SOV is highly correlated with Share of Market (SOM). So, it stands to reason that brands that maintain or grow their SOV during downturns are more likely to emerge with a greater SOM when the economy rebounds.
Let’s say your competitors slash their budgets and reduce their marketing presence — fewer ads, less PR, smaller campaigns. If you keep your marketing steady, your SOV is likely to go up. You get more visibility for the same spend.
This isn’t just theory. McKinsey noted that brands that continued to invest in marketing during previous recessions saw a share of market gains that were three times higher compared with those that pulled back.
Top-of-mind awareness at a discount
When other brands go dark, your voice gets louder. Brand-building — a long-term investment — becomes more cost-effective during downturns. You face less competition for attention, lower media costs and more receptive audiences. According to HBR, marketing costs like digital ads, sponsorships and media buys often drop during a downturn, allowing brands to negotiate better deals and gain more exposure.
Even more critically, this increased exposure can create a lasting impression. Consumers don’t just remember the brands that “were there”, they trust them more. You signal confidence, stability and leadership when others seem uncertain.
By being one of the few brands still active in the marketplace, still visible, still communicating, not only are you avoiding the damage of disappearing from consumer minds, but you’re also actively growing — in visibility, trust and eventual demand.
Studies conducted in past recessions, including the 2008 financial crisis, revealed that companies that maintained or grew marketing investments in these tougher climates saw stronger long-term growth and bounced back faster than their cost-cutting counterparts. In fact, their post-recession growth in sales and earnings ended up being among the best performing groups.
Yes, it still takes work
Of course, this doesn’t mean you can throw money into any old campaign and watch the leads roll in. Strategy, execution and creativity still matter, especially during tough times. You need to be smart, focused and adaptable.
But pulling back too hard could mean letting your hard-fought brand positioning slip away. The brands that win long-term are the ones that identify opportunities in recessions, not just risks. That means showing up with intention, and making smart, strategic investments.
